The February issue of the IAIS newsletter highlights that the global insurance sector plays a cornerstone role in the management of climate-related risks and opportunities for individuals, households, firms, other financial institutions, and public authorities. There is an increasing consensus across the financial sector that the potential systemic impact of climate change requires a similarly systemic global response, exemplified by work at the international level by the G20 and FSB. A growing number of insurance supervisors are examining the relevance of climate risks for insurance supervision, both individually and collaboratively through the Sustainable Insurance Forum (SIF).
The newsletter notes that IAIS is collaborating with SIF to develop an issues paper on climate-related financial disclosures for the insurance sector. This topic aims to open the dialog between insurance regulators, regulated firms, and other stakeholders around awareness of climate-related disclosures, use of scenarios and metric,s and support of the development of best practices to be considered by insurers in their financial disclosures. The newsletter further highlights that IAIS hosted an Insurance Capital Standard (ICS) stakeholder event on February 01, which gave members and stakeholders another opportunity to provide feedback on the ICS prior to the finalization of ICS Version 2.0 for the monitoring period.
Additional key updates for this month are as follows:
- The Capital, Solvency and Field Testing Working Group (CSFWG) met in Basel from January 28-31 to finalize its recommendations on 2019 Field Testing of ICS Version 2.0. These recommendations will go to the Policy Development Committee and the Executive Committee for endorsement at their meetings in late February.
- At its meeting on February 5-6, the Governance Working Group discussed the 2018 public consultation comments on ComFrame material in Insurance Core Principle (ICP) 5 on suitability of persons, ICP 7 on corporate governance, and ICP 8 on risk management.
- At its meeting on February 13-14, the Working Group discussed 2018 public consultation comments on ComFrame material in ICP 9 on supervisory review and reporting; ICP 10 on preventive measures, corrective measures, and sanctions; ICP 23 on group-wide supervision; and ICP 25 on supervisory cooperation and coordination.
- The Resolution Working Group met on January 23-24, with key items on agenda including a discussion of outcomes of the July 2018 draft ComFrame consultation and the November 2018 consultation on a draft application paper on recovery planning.
- The Supervisory Material Review Task Force met on February 7-8 and discussed the resolution of comments from the consultation on the draft introduction to ICPs and ComFrame.
Keywords: International, Insurance, Newsletter, Comframe, ICP, Climate Related Risks, IAIS
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The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.
The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.
The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.
The European Securities and Markets Authority (ESMA) published a paper that examines the systemic risk posed by increasing use of cloud services, along with the potential policy options to mitigate this risk.
The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.
The European Commission (EC) has issued two letters mandating the European Supervisory Authorities (ESAs) to jointly propose amendments to the regulatory technical standards under Sustainable Finance Disclosure Regulation or SFDR.
The European Banking Authority (EBA) published its annual report on convergence of supervisory practices for 2021. Additionally, following a request from the European Commission (EC),
The Farm Credit Administration published, in the Federal Register, the final rule on implementation of the Current Expected Credit Losses (CECL) methodology for allowances
The U.S. Securities and Exchange Commission (SEC) looks set to intensify focus on crypto-assets and cyber risk and extended the comment period on the proposed rules to enhance and standardize climate-related disclosures for investors.